UNJSPF Cuts Allocation to Equity Due to Over Valuation in Tech: Top 1,000 Funds

Pedro Guazo, UNJSPF Investment Chief

UNJSPF has reduced its allocation to equity (stock allocations) in its $92.5 billion portfolio by 10% due to overvaluation in tech. They are also stepping into new allocations in venture, impact, and private credit as well as fixed income.

According to Pedro Guazo, the SG's representative for the investment of the UNJSPF assets, the fund is in a strong position with a funded ratio of 111% . The fund's portfolio has been reduced and they are closely following trends, particularly the economic slowdown in China.

Impact themes are said to be aligned to the SDGs and range from biodiversity and the transition to social housing or female empowerment. They do not plan to build out allocations to private equity (8.3%), real estate (7.5%), or real assets. 

Managers say that the fund cannot hire the size of the team required for in-house investment in private markets, due to UN rules.